Analyst: Verizon on the hook to Apple for iPhone purchase commitments

0.phoneArena
12 Jul 2013, 01:54posted on

According to analyst Craig Moffett of Moffett Research LLC, Verizon Wireless is on the hook with phone manufacturers for $45 billion in purchase commitments; the bulk of that amount is related to agreements made by the nation's largest mobile carrier to purchase the Apple iPhone, which Verizon started carrying in 2010 with the Apple iPhone 4...

Meh. It works both ways. VZW isn't going to be dropping coin on a bunch of iP5 handsets. If Apple wants to make their numbers, they will release the iP5S before end of September, 2013. Then VZW places a big order that meets the purchase commitment and Apple and VZW skip happily off into the sunset. It is just bidness.

Yes that could happen in a perfect world, but the reality is that Verizon is going to realize that the Apple isn't keeping up with the trends and that they have bitten off more than they could chew in terms of what they could sale. The fact that Verizon was assuming that most of there consumers would go for the iPhone and more importantly, continue to do so is a testament to the lack of confidence that Verizon has in Google and phones makers of the Android OS. Other manufacturers like Samsung, LG and HTC are listening to consumers and making huge leaps in the technology they are bringing to the high end devices, while Apple is sitting back still doing things based on what they want and not what the consumers want. I'm not saying iPhone sales will take a substantial drop, but let's not expect them to make any noteworthy iPhone sales increases.

Let this be a lesson to cellular carriers not to make such ridiculous predictions based on passed historical information. I work for UPS and I can tell that times are constantly changing due to many factors so even we can't be to dependent on historical information. What makes Verizon or any other cellular carriers any different.

No one forced these carriers to, "Make a deal with the Devil." There is always Android, WP and BB, which I would assume have much more reasonable contracts. Plus if these carriers pushed for pre-paid they wouldn't have to worry about this in the first place.

Pretty iRoniC that one of the devices responsible for the Market Explosion which led to the development and release of much more advanced smartphones would be solely responsible for "Bursting the Bubble" and annihilating profit revenue. I hope these carriers don't have to file iBankruptcy due to Apple's voracious and ravenous greed.

Sure it's good for Apple until other parties that enter in contracts stop being so stupid about the contracts they enter into. It's no wonder other parties such as carriers are looking to find my ways to cheat there customers.

kind of makes me glad T-Mobile waited so long to carry the iPhone since it practically bankrupted Sprint and put a burden on other companies. They waited until they made a deal that made sense and stated time and time again they wouldn't sacrifice the company for one single device. Smart move if you ask me, even if we didn't understand why it took so long back then.

It's a pretty sad example of how the carriers (particularly Sprint and Verizon) bend over backward for the 'privilege' of selling the iPhone. At this point, with Android firmly in the #1 spot and Samsung outselling Apple, there shouldn't be any commitments to sell any number of iPhones. The whole point of the iPhone was that it sold itself. If that's no longer the case, the onus should be on Apple to improve the phone, not on the carriers to push stale product.

When's the contract up? Big Red may want to go the way of the... damn it, trying to come up with a good pun for Soviet Red here...
Either way, with Russian carriers dropping a bad investment, Verizon may want to take note about showing whom has the leverage to make a better deal.

It's not Verizon or Sprint's fault that customers are buying what they want. If a customer wants a Samsung phone, they'll buy a Samsung phone. The customer isn't some misinformed sucker that would buy a ketchup popsicle while wearing white gloves anymore that will buy something just because a salesman said it's good.

so i guess apples greedy contract conditions/terms with the carriers has led to the reason why the carriers are charging its customers with ridiculous plans/packages. the us carriers should just drop apple iphone sales as did russia. apple is becoming a laughin stock of a joke corporation.

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